Crop Update - June 15th 2017

It has been a great week for crops in Western Canada.  We received some showers this week with up to 30-40 mm in the Southeast and 15-20 mm in most of the other pulse production areas.  As the attached moisture map indicates, soil was beginning to dry up with the constant dry winds and high temperatures over the last 3-4 weeks.   As temperatures dropped into the low 20’s this past week, this has also been positive for crop development as we were in the low to mid 30’s across Saskatchewan in the previous 10-14 days.

Although crops are looking good with no significant reports of disease, insect damage or root rot, we still have farmers hesitating on hedging additional new crop lentils.  (Chick pea sellers are extremely quiet as well). 

With CIF lentil markets being quoted/offered below current NC producer bids, we see the following possible scenarios: 

  • Traders are becoming bearish and therefore attempting to get some short sales on the books.
  • Processors concerned with volume, trying to secure some orders for fall. 

Regardless of the motives, the NC market is relatively quiet with buyers anticipating lower prices.   Some sellers seem to agree, or at least are following, in an attempt to get something on the books.  It is important to also consider the old crop market is extremely slow and this may be influencing some of the new crop trading.

We remain very defensive on new crop for the same reason we have been the last 3 years:

No carryover of any decent quality lentils and zero chick peas of human grade.  As we all know, anything can happen in Canada and one frost or a week or two of heavy rains can quickly turn beautiful crops into ugly crops.